Key Takeaways
- SBA franchise loans unavailable to K-1 AOS holders -- Bankable is the primary alternative
- K-1 EAD allows franchise ownership -- franchisors can award to EAD holders
- Revenue-based funding available for both new franchise purchases and existing franchises
- Bankable has funded franchise investments for K-1 holders from 40+ countries
- Cleaning, food, fitness, and childcare franchises are most common K-1 purchases
Buying a franchise is a compelling path for K-1 holders because the business model, brand, and support system are already proven. The barrier isn't the franchise award -- most franchisors evaluate applicants on net worth, character, and experience, not immigration status. The barrier is the SBA franchise loan that funds most US franchise purchases. The SBA categorically excludes K-1 holders in adjustment of status. Bankable's revenue-based funding is the primary alternative for K-1 franchise buyers, providing up to $5M with 48-hour decisions.
The K-1 Funding Challenge
- SBA 7(a) and SBA 504 loans -- the standard franchise funding mechanism -- are unavailable to K-1 AOS holders
- Franchise fees range from $30K (home-based) to $500K+ (restaurant franchises)
- Franchisors require documented financial capacity before awarding franchise -- hard to show without US banking history
- Working capital requirements (3-6 months) must be demonstrated at franchise closing
- Banks decline franchise loans to K-1 holders citing immigration uncertainty
- Multi-unit franchise growth requires sequential capital that banks won't advance to K-1 holders
Bankable Solutions for K-1 Business Owners
- Franchise Purchase Funding ($50K-$2M): Fund the initial franchise fee, territory acquisition, and opening inventory.
- Existing Franchise Revenue-Based Funding: If you already own an operating franchise, access up to $5M based on monthly revenue.
- Equipment Financing for Franchise Buildout: Finance the specialized equipment required by your franchise agreement.
- Working Capital Reserves: Demonstrate required liquidity to franchisors while deploying capital efficiently.
- Multi-Unit Franchise Expansion: Fund additional franchise territories once your first unit is performing.
Why Banks Fail K-1 Entrepreneurs
Traditional banks evaluate business loan applications through a lens built for citizens and permanent residents. They demand two or more years of US tax returns, a Social Security number with a long credit history, and often require a green card or citizenship as an unstated condition. K-1 holders in the adjustment of status period rarely meet all these criteria simultaneously.
Bankable funds revenue, not immigration documents. Check your Bankability Score in 5 minutes with no hard credit pull. Explore SBA alternatives and revenue-based products.
Revenue-Based Funding
Up to $5M tied to your monthly business revenue. No green card required. 48-hour decision.
Apply Now →Equipment Financing
Asset-backed funding for K-1 business owners. Fast approval, EAD-eligible.
Learn More →Working Capital Bridge
Bridge cash flow gaps during AOS. Flexible repayment tied to your revenue.
Check Score →Frequently Asked Questions
No. Bankable does not require a green card or US citizenship for any of its funding products. A valid EAD and a registered US business entity are the primary requirements.
Bankable makes decisions within 48 hours of receiving complete documentation. Funding typically arrives within 3-5 business days of approval.
SBA rules require all 20%+ business owners to be US citizens or lawful permanent residents. K-1 holders in AOS are excluded regardless of revenue or business quality. Bankable fills this gap.
Typically 3-6 months of business bank statements, your EIN, proof of business ownership, and your EAD. The Bankability Score tool provides a personalized document list in 5 minutes.
Cleaning service franchises (Jan-Pro, Coverall, Molly Maid), fitness franchises (9Round, Anytime Fitness), food concepts with moderate fees, and childcare franchises are most popular because they match K-1 budgets and skill sets.
Yes. Franchisors award franchises to EAD holders in most cases. The EAD grants full business ownership rights. Bankable's funding is available based on the franchise's revenue potential and the brand's track record.
Bankable can provide documentation of approved credit facilities that demonstrate financial capacity to franchisors during the application process. This is commonly used by K-1 franchise buyers.
Bankable can fund franchise investments starting at approximately $50K total (franchise fee plus buildout). Below that threshold, the funding economics are less favorable. Most Bankable franchise clients are investing $100K-$1M.